The Chartered Institute of Payroll Professionals ……………………………………………………………Policy News Journal
after). Charges paid out of member savings in default investment arrangements must be no higher than 0.75% a year of the member’s fund. You may also need to consider whether the scheme offers investment options that suit the particular needs of your client, such as ethical funds or funds that comply with Sharia law. Compatibility with payroll software While payroll software can’t choose a scheme on your client’s behalf, it’s important to know that some may be more compatible with certain pension schemes than others. Payroll software can also help with other automatic enrolment tasks. For example, it is likely to be able to help identify who must be put into a pension scheme. Payroll software can also help calculate contributions and manage ongoing duties. Additional services Pension schemes may offer extra services, such as working out who needs to be put into a pension scheme, processing requests to join the scheme or helping with ongoing duties. Your client will need to write to staff individually to explain how automatic enrolment applies to them, including how tax relief works. Some pension schemes may offer to do this on their behalf. If the scheme doesn’t do this, we have letter templates which you/your clients can use. Payroll software may also offer this service. If English isn’t the first language of all your client’s staff, you may also want to check whether the scheme can provide communications in other languages. You should ask the scheme provider what charges your client and their staff will pay. Different providers charge in different ways, for example an ongoing monthly charge or a one-off up-front charge for the life of the pension scheme. Some schemes may also have an exit fee for employers who change pension schemes. Pension scheme members pay charges to cover the cost of managing their savings. Some schemes may have different charges for different members. For example, some schemes may have lower charges for low paid staff, which may mean that these staff pay less for their pension, even if the scheme uses net pay arrangements for tax relief. You may want to help your client weigh up the costs and charges against the level of services that the scheme will provide. Some services may make automatic enrolment easier for your client over the long term. TPR recommends employers have a pension scheme in place six months before their staging date Taking the time beforehand to research and compare different costs and service levels will help ensure your client chooses a scheme that is right for them and for their staff. How much is setting up a pension scheme likely to cost?
Useful links
Business advisers – choosing a pension scheme for clients Your role in helping clients choose a scheme What to consider when choosing a scheme Find a new pension scheme for clients
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New essential guide to re-enrolment 26 September 2016
For those of you starting to think about re-enrolment, The Pensions Regulator has improved their online guidance and published a new essential guide to re-enrolment.
Your re-enrolment duties must be carried out approximately three years after your automatic enrolment staging date.
Your duties will vary depending on whether you identify that you have staff to re-enrol, or whether you have no staff to re-enrol. Either way, you will need to complete a re-declaration of compliance to tell the Regulator how you have met your duties.
Remember, re-enrolment and re-declaration is your legal duty and if you don't act you could be fined .
The new essential guide to re-enrolment takes you through everything you need to know, from choosing your re- enrolment date to completing your re-declaration of compliance.
The Chartered Institute of Payroll Professionals
Policy News Journal
cipp.org.uk
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